The deal will help Petalfast scale in Arizona.
Cannabis sales and distribution platform Petalfast acquired the sales and distribution subsidiary of Flow Distribution, an esteemed cannabis cultivator, manufacturer, and distributor based in Phoenix.
Flow Distribution provides statewide sales coverage, marketing, warehousing, and logistics services.
The acquisition will combine Flow’s sales and distribution teams with Petalfast’s brand management, sales, and marketing teams, creating an all-inclusive distribution service for brands looking to scale “efficiently and effectively” in the growing Arizona market.
Petalfast CEO Jason Vegotsky called the acquisition a “significant strategic milestone” in the company’s push to become the largest cannabis distributor in the country.
“Flow’s presence in the growing Arizona market and established relationships with major retailers and brands will ultimately benefit existing and new brand partnerships,” Vegotsky said in a statement.
Flow founder and CEO Brad Ottomeyer expressed enthusiasm for the new stage of growth and innovation.
“With a commitment to delivering exceptional value to their clients and a culture of professionalism and positivity, Petalfast seamlessly aligns with the foundation we have built here at Flow,” Ottomeyer said.
Flow Arizona will continue to provide white-label cultivation and manufacturing services for cannabis brands seeking to scale, now with additional capabilities, resources, and support from the Petalfast team.
The terms of the acquisition were not disclosed. Petalfast recently concluded an accretive equity capital raise, which facilitated the acquisition.
